Light Reading
Orange has set up camp in Silicon Valley to find startups with interesting services for its network, but it is more interested in partnering than acquiring talent.

Orange on the Partner Hunt in Silicon Valley

Sarah Reedy
10/29/2013
50%
50%

SAN JOSE -- Digital Disruption -- Orange has realized in the past 5-7 years that innovation has to come from both inside and outside the company, but it's leaning more toward outside these days.

Speaking on a panel here Tuesday, Georges Nahon, CEO of Orange Silicon Valley, the US arm of France Télécom, explained how the process of innovation has evolved at the Paris operator. It has its Orange Vallée subsidiary working on innovative communications apps inside, but it recently expanded its focus to look outside its walls and even outside its home country. (See: Innovation Makes Life Better for Orange and Is Orange Really Innovating?)

The company has had a Silicon Valley presence for years to be closer to the developer community. This May, it welcomed its inaugural class of startups as part of its Fab accelerator program, in which developers spend three months at Orange labs building new services that leverage the Orange network. (See: 'Orange Fab' Has Its First Startups and Euronews: Orange Hatches Startups.)

Rod Randall, executive partner at the private equity firm Siris Capital, joined Nahon on stage and talked up the power of investing outside the company to acquire talent. But Nahon said Orange is most interested in partnering, signing distribution deals, and potentially building special features today.

"We are being approached all the time about investors that want to see Orange be an acquirer in an existing company," he said. "We are a network services provider. We operate network services. We aren't an Apple creating devices. The network business is very resilient."

Sure, you can disrupt the network, Nahon said; voice is still there, even if it isn't what it used to be. But Orange is more interested in complementing what assets it does have with people who develop services on the periphery of its core business. "I don’t see ourselves getting into product design and manufacturing," he said. "The reason we want to invest in services companies is this is the other side of the network business, the people from the cloud and apps business. These are nice combinations. We don't converge; we combine."

Most of the innovation Orange has seen coming out of Silicon Valley has centered on mobile services, rather than infrastructure, but Nahon said the evolution to software-defined networking has shifted the focus. Young entrepreneurs think they can do telecom without the telcos or just build over the top of their networks -- and a good number of them have -- but Orange's goal with the Fab program is to show them the benefit of a partnership. One example he cited was a cloud-based call center that uses big data analytics behind the scenes to understand callers. Orange decided to partner with this company to co-brand and co-market the service.

The overall roadmap in terms of what services it develops is decided by Orange's top management in Paris, Nahon said, but with many more inputs than would have happened in the past. Part of that process is this new practice of talking to people and companies it hasn't talked to in the past but that might bring value to the industry. "You just can't put everything on a roadmap. You need to be prepared to disrupt the roadmap at some point."

— Sarah Reedy, Senior Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
MordyK
50%
50%
MordyK,
User Rank: Light Sabre
11/3/2013 | 5:34:29 PM
Re: Competing for partners
These are all very valid points. However I think that one of the larger issues faced by app developers is simply access to the carriers infrastructure.

Apps that leverage existing API's or unpublished capabilities lying on the fringe of he network are one thing, but the possibilities that lie in the network "crypt" are extremely difficult and timeconsuming to gain access to, even for the carriers internal "innovation" development.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
10/29/2013 | 6:16:43 PM
Re: Competing for partners
Good point. It seems like if you're a developer with an innovative idea, you have a lot of options in front of you. But, if you are a developer with an innovative idea, I'm not sure an operator incubator is your first choice. I think it depends how far along you are and whether you want VC funding or to be acquired or to become an operator partner. Interesting, too, that it'd rather partner than acquire, although I wonder if it's eyeing exclusive or white-label-style partnerships.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
10/29/2013 | 6:13:24 PM
Competing for partners
Given that every large service provider I talk to now says they are looking to be better partners to innovative applications and services companies, I wonder if any of these companies are being pursued by multiple carriers. 

I did like his frank assessment of what Orange is and what it isn't. 
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
iPad Air 2 Lets Users Switch Carriers Any Time
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
NYC Subway Wireless No Cure for Ebola Fears
Dan Jones, Mobile Editor, 10/16/2014
The Human Gain of the Smart Home
Robin Mersh, 10/20/2014
Like Us on Facebook
Twitter Feed